Which of the following statements about the financial statements of limited liability companies are correct
according to International Accounting Standards?

      (1) In preparing a cash flow statement, either the direct or the indirect method may be used. Both lead to the
            same figure for net cash from operating activities.
      (2) Loan notes can be classified as current or non-current liabilities.
      (3) Financial statements must disclose a company’s total expense for staff costs and for depreciation, if material.
      (4) A company must disclose by note details of all adjusting events allowed for in the financial statements.

A     1, 2 and 3 only
B     2 and 4 only
C     3 and 4 only
D     All four items

A